Rackspace Technology (NASDAQ:RXT) Trading Down 14.3% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price traded down 14.3% during trading on Monday . The company traded as low as $4.95 and last traded at $4.9890. 8,052,953 shares were traded during mid-day trading, a decline of 67% from the average session volume of 24,196,463 shares. The stock had previously closed at $5.82.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Royal Bank Of Canada boosted their target price on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $1.95.

Rackspace Technology Stock Performance

The firm has a market cap of $1.20 billion, a price-to-earnings ratio of -7.89 and a beta of 2.23. The business has a 50 day simple moving average of $2.06 and a 200-day simple moving average of $1.42.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, research analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the transaction, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark A. Marino sold 234,683 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer owned 2,193,115 shares in the company, valued at $3,574,777.45. The trade was a 9.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 502,440 shares of company stock worth $867,173 in the last 90 days. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the business. R Squared Ltd boosted its stake in shares of Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares during the last quarter. Engineers Gate Manager LP lifted its stake in Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after purchasing an additional 11,141 shares during the last quarter. Alliancebernstein L.P. lifted its stake in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after purchasing an additional 11,300 shares during the last quarter. Creative Planning lifted its stake in Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the last quarter. Finally, XTX Topco Ltd lifted its stake in Rackspace Technology by 62.8% in the second quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock valued at $74,000 after purchasing an additional 22,243 shares during the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.